Nomura sets INR 6,000 target for InterGlobe Aviation stock

Published on 10/06/2026 at 05:26 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

IndiGo adds INR 375 to INR 1,300 in charges from October 6, 2026. Nomura rates InterGlobe Aviation stock Buy on 19.90 percent first-quarter growth.

InterGlobe, INE646L01027, Illustration mit AI erstellt.

Nomura initiated coverage of InterGlobe Aviation with a Buy rating and an INR 6,000 price target on October 5, 2026, making the airline's fuel-cost response the key issue for InterGlobe Aviation stock. According to CNBC TV18, Nomura expects revenue to grow at a 16.00 percent compound annual rate between fiscal 2026 and fiscal 2029.

Fuel charges reach INR 1,300

IndiGo introduced domestic fuel charges from INR 375 for routes up to 500 kilometers to INR 1,300 for routes longer than 2,000 kilometers from October 6, 2026. International charges range from INR 1,000 for shorter South Asian routes to INR 10,000 for Europe.

Business Standard reported on October 5, 2026, that aviation turbine fuel costs had risen more than 14.00 percent month over month. The new charges therefore represent a partial pass-through rather than a complete offset of the cost increase.

Nomura targets INR 6,000

The Nomura target is 20.40 percent above the September 30, 2026 closing price cited in the coverage report. The brokerage also expects earnings before interest, taxes, depreciation and amortization to grow at a 38.00 percent compound annual rate between fiscal 2026 and fiscal 2029.

The operating backdrop is mixed. Higher fares can protect revenue per passenger, but fuel remains a direct pressure on airline margins. That balance matters because the latest reported quarter already showed the cost impact.

First-quarter loss tests pricing power

In the first quarter of fiscal 2027, consolidated revenue from operations rose 19.90 percent year over year to INR 24,584.10 crore, while consolidated net loss was INR 237.60 crore versus profit of INR 2,176.30 crore in the year-ago quarter, according to Sahi on October 5, 2026. The 19.90 percent revenue increase alongside the quarterly loss shows why surcharge recovery, traffic volume and fuel prices must be assessed together.

InterGlobe Aviation is listed on the National Stock Exchange of India under ticker INDIGO. Its IndiGo airline operates the core business, while the current surcharge schedule places the clearest test on whether higher costs can be passed through without weakening demand.